Question 2 Suppose that you are the auditor of a major retail client who has reported the following income before taxes (IBT) for the first two quarters of the year: 1st quarter = $2,400,000 and 2nd quarter = $3,000,000. You are in the process of establishing overall materiality for the client. Based on prior years, the client has a 5% decline in IBT from the 2nd quarter to the 3rd quarter. You also know that IBT in the 4th quarter increases by 35% over the 3rd quarter. The overall materiality is 3 % of annual IBT. Required: Determine the amount of overall materiality for the audit based on these preliminary amounts